Zoomcar Posts $26 Mn Loss On $9 Mn Revenue In FY25

Troubled rental car marketplace Zoomcar managed to cut its loss by 25% to $25.6 Mn in FY25 from a loss of $34.3 Mn in the previous year, despite a decrease in its top line.

The Bengaluru-headquartered company’s net revenue stood at $9.1 Mn during the fiscal year, a decline of 8% from $9.9 Mn in FY24. It managed to curb its loss on the back of optimising its expenses by 53%, spending $19.5 Mn in FY25 as against $41.6 Mn in FY24.

In line with the decline in expenses, the Nasdaq-listed company’s adjusted EBITDA loss shrunk 44% to $9.9 Mn in FY25 from $17.9 Mn in the previous fiscal.

Despite the fall in revenue and persistent losses, Zoomcar said its contribution profit reached an all-time high in FY25. It reported a contribution profit of $4.3 Mn in FY25 against a contribution loss of $980K in FY24.

For context, contribution profit is the revenue remaining after deducting variable costs from sales.

The company claimed that its user bookings surged 10% YoY to 4.3 Lakh during the year under review from 3.9 Lakh in FY24. Repeat user bookings increased to 13% from 7% last fiscal.

“FY25 was a pivotal year for Zoomcar as we strengthened our marketplace fundamentals and achieved new financial milestones. We remain focused on improving the customer experience and leveraging technology to unlock greater value for our guests and hosts,” Zoomcar’s recently appointed CEO Deepankar Tiwari said.

Notably, despite the improvement, the company still remains burdened under debt. In the fiscal year, Zoomcar registered a loss of $1.2 Mn in troubled debt restructuring. The company’s accrued losses continue to put a question mark over its future. At the end of 2024, Zoomcar had a negative working capital of $40.8 Mn.

“The company’s cash position is critically deficient and critical payments to the operational and financial creditors of the company are not being made in the ordinary course of business, all of which raises substantial doubt about the company’s ability to continue as a going concern,” Zoomcar said in a filing in February.

Zoomcar was said to be looking to raise an external funding of $30 Mn to meet its financial obligations. Of this $30 Mn, the company raised $9.15 Mn via private placement in November 2024. Following that, Zoomcar entered into multiple new agreements:

• In December 2024, Zoomcar entered into a securities purchase agreement with certain accredited investors in connection with the first closing of a private placement offering in which the company was offering securities worth $4 Mn to $30 Mn.
• In March this year, Zoomcar entered into a settlement agreement to resolve “certain claims” with Aegis Capital Corp. and its affiliates. In exchange for resolving these claims, Zoomcar issued $7 Mn worth of its securities – common stock, Series A warrants, and Series B warrants – in a private placement to the investor.
• In June 2024, the company issued about 2 Mn pre-funded warrants to investors worth $3 Mn.

Apart from the financial issues, the company also recently faced a significant cyber attack. On June 9, it suffered a cybersecurity incident that led to a hacker accessing personal information of close to 8.4 Mn users. The leaked data contained information like the affected users’ names, phone numbers, car registration numbers, personal addresses and email addresses.

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